Local investor buys South Bay hotel near Pruneyard Shopping Center

"CAMPBELL - A South Bay hotel with a prominent perch across the freeway from the Pruneyard Shopping Center has been bought at a price that reflects relatively weak values for Bay Area hospitality hubs. Ankit Panchal, a San Jose-based business executive with experience in hotels, led the group that bought the Campbell Inn for $11 million, according to documents filed on Dec. 31 with the Santa Clara County Recorder's Office."

"The deal was completed as the Bay Area hotel market battles against a wave of loan defaults, plunging prices and property foreclosures that have stifled purchasing activity and new development. The 95-room hotel, located at 675 E. Campbell Ave., is highly visible from State Route 17. The price that the Panchal-led group paid for the Campbell Inn worked out to roughly $115,800 per room."

"In sharp contrast, prior to the coronavirus outbreak, hotels frequently were bought for well over $200,000 a room. In 2018, San Jose's largest hotel, located at 170 South Market St. in downtown San Jose, was bought for $277,600 per room. A foreclosure in May 2025 valued the hotel, known as the Signia by Hilton San Jose, at $147,900 a room. Transactions that occurred throughout 2025 showed that hotel values have continued to plummet. The Oakland Marriott City Center, a 500-room hotel in downtown Oakland, was foreclosed at $140,000 a room in July 0f 2025."

Ankit Panchal led a group that purchased the 95-room Campbell Inn in Campbell for $11 million, recorded Dec. 31. The hotel sits at 675 E. Campbell Ave., prominently visible from State Route 17. The purchase equates to approximately $115,800 per room, well below pre-coronavirus per-room prices that often exceeded $200,000. Recent 2025 transactions and foreclosures indicate continuing declines in Bay Area hotel valuations. Examples include the Signia by Hilton San Jose valued at $147,900 per room after a May 2025 foreclosure and the Oakland Marriott City Center foreclosed at $140,000 per room in July 2025.

Read at The Mercury News